PRINCIPAL COMMISSIONER OF INCOME TAX, (CENTRAL), SURAT vs. VEEAAR ASSOCIATES

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TAXAP/1276/2018HC GujaratGJHC24064823201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court disposed of the appeal accordingly. The judgment also reserves liberty for the Revenue to revive the Tax Appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated circular and the Revenue's decision not to press it.

What were the facts?

The Principal Commissioner of Income Tax, (Central), Surat, filed a Tax Appeal before the Gujarat High Court against an order concerning Veeaar Associates. The appeal was listed for an appropriate order by the Registry due to a low tax effect. The court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular outlines monetary thresholds for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was ultimately disposed of in light of this circular.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, considering Circular No. 17/2019 issued by the CBDT? (Question of law and fact) The Revenue contended that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/1276/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  1276 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX, (CENTRAL), SURAT Versus VEEAAR ASSOCIATES ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) The Registry has notified the Appeal for the purpose of passing an appropriate order. The captioned Appeal has been notified because of the low tax effect. The Appeal is to be disposed of keeping in mind the Circular No.17/2019, dated 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. This Tax Appeal is not pressed in view of the low tax effect having regard to the Circular No.17/2019, dated 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/1276/2018                                                                                                 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 In view of the aforesaid, the Appeal is disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the Tax Appeal. (J. B. PARDIWALA, J.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page  2 of  2

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